Ameriprise Financial Inc.'s (AMP) first-quarter profit climbed
65%, helped by higher revenue amid positive retail client asset
flows and good new client acquisition growth.
The economic crisis had dented the financial-services planning
provider's revenue and fees. But the company swung to the black in
the last two quarters of 2009, and on Monday, it reported another
profit, generating its best first-quarter results as a public
company. A year ago, results were stung by the significant decline
in equity markets.
Last month, Moody's Investors Service touted the company's
ability to maintain its market position during the challenging
economic environment. It said when the economy recovers, the
company would benefit from its success in keeping the vast majority
of its clients and planner relationships active.
Ameriprise posted a profit of $214 million, or 81 cents a share,
up from $130 million, or 58 cents a share, a year earlier. Core
operating earnings, which exclude losses from credit-market
dislocation, rose to 81 cents from 60 cents. Total net revenue
improved 32% to $2.27 billion, helped by a 40% increase in
management and financial advice fees.
Analysts polled by Thomson Reuters projected a profit of 81
cents on revenue of $2.22 billion.
Owned, managed and administered assets were $463 billion at
March 31, up 31% from a year earlier and 1.1% higher than the prior
quarter. Net inflows in wrap accounts jumped 93% from a year ago
but declined 3.8% from the fourth quarter.
Shares were down 1.1% to $47.99 in after-hours trading.
-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com